Self-employed mandatory MPF at 5 percent of relevant income, within the annual limits.
Annual MPF contribution
—
Monthly equivalent
—
Contributory income
—
Self-employed MPF is the same rate, different machinery
If you run your own business in Hong Kong, freelance, consult, drive, or trade, you are still in the MPF system, just without an employer to share the load. You pay 5 percent of your relevant income as a mandatory contribution, the same rate an employee pays. What changes is the framing. There is no monthly payroll, so the MPFA works off your annual relevant income, which for most sole traders means your declared business profits. This calculator is built for that audience: the self-employed person who needs to know the yearly bill and the monthly slice of it.
The floor and the ceiling that bracket your bill
Two thresholds do the heavy lifting, and they mirror the monthly limits employees face. Below an annual relevant income of $85,200, the floor modelled here, you owe no mandatory contribution at all. That floor is the annualised version of the $7,100 monthly minimum, so a small side business that earns under it is simply outside the mandatory regime. At the other end, contributory income is capped at $360,000 a year, the annualised $30,000 monthly ceiling. Earn more than that and the extra does not raise your contribution. Squeeze those together and your mandatory contribution can never exceed $18,000 in a year, which is 5 percent of $360,000. These thresholds are reviewed by the MPFA, so take them as the figures the tool applies and confirm the current numbers with the MPFA.
A trader earning $360,000, year and month
Take a self-employed person whose relevant income for the year is exactly $360,000, the default in the tool. That sits right at the contributory ceiling, so the whole $360,000 counts. Apply 5 percent and the annual mandatory contribution is $18,000, the maximum. Spread across twelve months that is $1,500 a month, although as a self-employed person you can usually choose to pay monthly or annually based on your declared profits. Earn $400,000 instead and nothing changes: the contributory income is still capped at $360,000 and the bill stays $18,000.
| Step | Amount |
|---|---|
| Annual relevant income | $360,000 |
| Contributory income (capped at $360,000) | $360,000 |
| Rate applied | 5 percent |
| Annual contribution | $18,000 |
| Monthly equivalent | $1,500 |
The trap of a volatile year
A point that trips up freelancers: relevant income for the self-employed is your business profit, not your turnover. Bill $500,000 but spend $200,000 running the business and your relevant income is the profit you declare, not the gross. In a lean year your contribution can fall to zero if profits dip under the floor. Keep clean records, because the contribution is set on your declared figure. And remember the wider Hong Kong backdrop works in your favour here: there is no separate tax on the investment returns inside your MPF, no capital gains tax, and the eventual withdrawal at retirement is tax-free. Your mandatory contribution is also deductible against tax up to the standard $18,000 deduction cap, a figure to confirm with the Inland Revenue Department.
Timing is the other thing self-employed people get wrong. Your relevant income is reviewed against your latest declared figures, and the MPFA expects contributions on a regular schedule rather than a single payment at year end. If your income jumps mid-year, your contribution should track it up to the ceiling; if it falls, you may be able to adjust downward. A practical habit is to set aside 5 percent of profit as you earn it, the same way you would provision for tax, so the contribution never lands as a surprise. Because the floor and ceiling are annual figures, a strong quarter followed by a weak one can still leave your full-year contribution modest, which is why the annual view this tool gives is more reliable for planning than guessing month by month.
Do I have to enrol if I am self-employed?
Generally yes, if you are aged between 18 and 65 and your relevant income reaches the floor. You choose a scheme and arrange your own contributions. Certain categories, such as some casual or exempt persons, sit outside it, so check your status with the MPFA.
Can I pay more than the mandatory amount?
Yes, through voluntary contributions, and a tax-deductible voluntary contribution can attract relief under a separate $60,000 cap shared with deferred annuities. The mandatory figure this tool calculates is the floor of what you must pay, not a limit on what you may save.